The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised concerns over the 15.13 percent increase in Pakistan’s trade deficit during the first quarter of FY2026-27, warning that the widening gap could put pressure on the country’s foreign exchange reserves.
According to the latest Pakistan Bureau of Statistics data cited by FPCCI President Atif Ikram Sheikh, the trade deficit increased to $10.792 billion during July-September 2026 from $9.374 billion in the same period last year.
The trade deficit also widened in September alone, reaching $3.55 billion, up 6.15 percent from $3.35 billion in September 2025.
Sheikh attributed the widening trade gap to what he described as the high cost of doing business in Pakistan, which he said was hurting the competitiveness of local manufacturers against regional competitors.
He cited high interest rates, electricity capacity charges and petroleum levies as major barriers to industrial productivity and value addition.
Sheikh warned that continued reliance on imports to meet domestic demand could further pressure the national exchequer and create balance of payments risks if structural measures are not introduced.
To support FY2026-27 export targets and prevent industrial stagnation, FPCCI has urged the Ministry of Finance and the State Bank of Pakistan to reduce the policy rate to single digits to provide manufacturers with more affordable working capital.
The FPCCI president also called for the immediate rationalization of electricity and gas tariffs to bring them closer to rates offered by regional competitors.
He further called for targeted relief on inland logistics costs to reduce domestic supply chain expenses and improve the competitiveness of Pakistani manufacturers.
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